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California top court upholds ballot measure treating Uber, Lyft drivers as independent contractors



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July 25 (Reuters) -California's top state court on Thursdayupheld a measure approved by voters allowing app-based services such as Uber UBER.N and Lyft LYFT.O to consider drivers in the most populous U.S. state as independent contractors rather than as employees entitled to greater benefits.

The ruling by the California Supreme Court is a major victory for the ride-hailing industry, which has said that many companies would end or limit service in the state if they were forced to treat thousands of drivers as their employees.

The court dismissed a lawsuit by the Service Employees International Union (SEIU) and four drivers who say the 2020 ballot measure known as Proposition 22, which preserves drivers' contractor status while granting them some benefits, was unconstitutional.



Reporting By Brendan Pierson in New York; Editing by Rod Nickel and Chizu Nomiyama

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